Hedge Funds

Paulson remains vague about redemptions


Investors wonder if the firm will experience increased redemptions in response to its recent headline risk.

Despite his ongoing enthusiasm for gold, it seems John Paulson may have lost a bit of his golden touch when it comes to courting investors.

The potential fallout from Paulson & Co.’s involvement related to investments that led to the Securities and Exchange Commission’s charges against Goldman Sachs is still unclear. In addition, there has been a slowdown in the firm’s recent performance. Following these events, Paulson recently told investors that capital inflows could slow up for the second quarter of 2010.

Though Paulson & Co. gave back roughly $8 billion in 2009, the firm continued to benefit from a